The Financial Action Task Force (FATF), established by the Group of 7 (G-7) in 1989, is the global money laundering and terrorist financing watchdog, much like the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Asset Control (OFAC) in the United States. As an intergovernmental body, FATF has a unique position; it has been charged with analyzing AML programs worldwide, setting standards for international adherence, and preventing these illegal activities and other threats to the integrity of the international financial system.
FATF monitors countries' progress in implementing the adequate adaptation of Anti-Money Laundering and Counter Terror Financing (AML/CTF) programs base on the FATF Recommendations. Periodically, FATF publishes updated reviews of countries who have money laundering concerns and should be considered higher risk for Bank Secrecy Act (BSA) purposes. The industry refers to this category as a “grey list”, although that is not a term used internally by FATF.